News of the World phone hacking scandal hits No. 10

David Cameron struggled to distance himself from the News of the World hacking
scandal after he faced questions over his decision to hire Andy Coulson as
his director of communications.

Mr Cameron’s intervention came 24 hours after the announcement that the News of the World would close, and on the day detectives arrested both Mr Coulson and a former reporter at the News of the World over allegations of phone hacking and illegal payments to police

In a press conference minutes before Mr Coulson, the paper’s former editor, was arrested by police, the Prime Minister repeatedly stressed that the appointment was “his responsibility” but declined to apologise or acknowledge a mistake had been made.

He admitted that the relationship between politicians and the media had become too close.

He said the current system of press regulation needed to be overhauled and ann-ounced two inquiries, one into phone hacking and one into the conduct of the media.

Mr Cameron’s intervention came 24 hours after the announcement that the News of the World would close, and on the day detectives arrested both Mr Coulson and a former reporter at the News of the World over allegations of phone hacking and illegal payments to police.

Mr Coulson was editor when most of the alleged hacking is said to have taken place but was given a “second chance” with the job for Mr Cameron.

:: The Prime Minister said that James Murdoch, the chairman of News International and the son of Rupert Murdoch, had “questions to answer” after he admitted making mistakes in his handling of the scandal. He also indicated that Rebekah Brooks, the chief executive of News International and also a friend, should have resigned.

:: Media regulators suggested they may intervene to stop BSkyB being run by News Corp, the Murdoch family’s main company, on the grounds that the directors are not “fit and proper”.

:: Mrs Brooks told staff at the paper that it had to be shut down because worse revelations about its activities were imminent. She was stripped of her role investigating the scandal.

:: Ed Miliband, the Labour leader, faced growing questions over his hiring of a former News International employee accused of wrongdoing, which he denies.

Mr Cameron sought to seize control of the scandal which has dominated the news agenda for a week. The Prime Minister indicated that the alleged criminality at the newspaper would lead to major changes in the entire media industry.

“Because party leaders were so keen to win the support of newspapers we turned a blind eye to the need to sort this issue, get on top of the bad practices, to change the way our newspapers are regulated,” he said.

The Prime Minister described the News of the World scandal as a “wake-up call”, adding: “Over the decades, on the watch of both Labour leaders and Conservative leaders, politicians and the press have spent time courting support, not confronting the problems.

“Well, it’s on my watch that the music has stopped and I’m saying, loud and clear — things have got to change.”

Mr Cameron’s pledge to intervene in the crisis has been criticised by opposition politicians because of his decision to bring Mr Coulson into Downing Street.

He repeatedly refused to apologise for that decision, saying he had received “assurances” from Mr Coulson that he had no knowledge of phone hacking at the newspaper.

Asked at a press conference if he had “screwed up” by employing Mr Coulson in the wake of his resignation from journalism, Mr Cameron said: “People will decide.” He added: “I decided to give him a second chance but the second chance didn’t work. The decision to hire him was mine and mine alone.”

He said a company had run a “basic background check” on Mr Coulson before he was employed while the Tories were in opposition. He had received no “actionable” information about the former editor and was unaware of “specific” warnings.

Mr Coulson resigned from Downing Street in January after News International passed new evidence to the police on alleged phone hacking. Mr Cameron said he had spoken to and met Mr Coulson since then. He said: “I think he did his job for me in a very effective way. He became a friend and he is a friend.”

Downing Street sources said that the Prime Minister was currently giving Mr Coulson the “benefit of the doubt” until any evidence emerged proving that the assurances he gave were misleading.

Mr Miliband demanded that Mr Cameron apologise for the decision. The Labour leader said: “His wholly unconvincing answers of what he knew and when he knew it about Mr Coulson’s activities undermine his ability to lead the change that Britain needs.”

Mr Cameron said that a reported resignation offer from Mrs Brooks, also a good friend, should have been accepted.